Newswatch 23rd February 2017
Greetings from the Airline Economics Conference in Korea. It has been an engaging exchange of insight from a broad mix of speakers and delegates from across the industry with representatives from finance, law and aviation. Having spoken to many Korean investors over the past few days, the key question has been whether Korean investors will move away from being relatively passive lenders in lease deals, typically on widebody transactions with top tier airlines, to being broader lenders in a wider tier of airlines, focusing more on narrowbody aircraft, or being operating lessors themselves. Investors shared their concerns around the challenges of broadening their investment to a wider selection of aircraft and airlines, including the need to assess airlines, fleet selection, asset management and the additional layers of fees and advisory costs, as well as time taken to put deals through the investment committee.
All of which ties elegantly back to IBA’s latest thought leadership around shifting markets and risk.
Professor David Yu, IBA’s Executive Director Asia, examines trends in the aviation finance sector driven by the role of insurance companies and commercial banks. Click here to read the article in Airfinance Journal.
Paul Lyons provides a comparison of fleets and country risk to identify exposures and gives advice on next steps in Airline Economics.
Lastly, my article in January’s Airline Economics looks at the pitfalls of fleet selection and acquisitions and how to avoid them. Click here to read the article in full.
I will be at ISTAT Americas at the beginning of March where we will have an IBA meeting booth. Get in touch to arrange a meeting to see our new fleet and values analysis platform IBA.IQ or to talk over any of the topics from Dublin or Korea. In addition, although I am a modest man and don’t want the attention, I will be “singing” Summer of 69 and Hot legs with the ISTAT band on Monday night… in my own special way. If you’re a fan of Bryan Adams and/or Rod Stewart, I’d understand if you stay away.